Interest on personal loan
Querist : Anonymous
i took a personal loan from bank & now i am furnishing my ITR, please tell me can i take benefit of interest paid on loan EMI, if yes under which head.
Thanks
Mukesh
If loan is taken for the purpose of business or profession then only you can claim the interest expense.
Personal loans are taken for business purposes all the time. income-tax doesn't discriminate on the basis of what is the purpose of loan as long as the funds have been utilized for the business and the interest is paid out of business.
Even if I take a personal loan and then use it for building a house, deduction under "income from house property" shall be available...the same shall apply for Income from business/profession, Income from other sources
Personal loan by its nomenclature never suggest it is taken for business purpose only.
It may be taken for marriage/other function, for education of child (if education is not sanctioned).
As querist never said the purpose of loan nor he disclosed his business/profession/employment, you can not stretch the power of imagination to say it is taken for business purpose only.
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